Vijayawada realty market still in doldrums

Hyderabad: After the YS Jagan Mohan Reddy-led government announced the proposal to have three capitals of Andhra Pradesh, the real estate market came to a halt in and around Vijayawada, which is close to Legislative capital Amaravati. From the same time, the realty sector has been growing in Visakhapatnam and Kurnool.

Though the lockdown has impacted badly on construction activity, property deals picked up in almost all major cities and towns in the State, except Vijayawada. As per the data from AP Registration and Stamps Department, Vijayawada is the only city in the State with a sharp decline in real estate sales during August 2020 - February 2021.

The period of review is in-between the first wave and second wave of the Covid-19. The number of registrations in Vijayawada and Vijayawada East together decreased 11.3 per cent to 1,03,424 in August 2020 - February 2021 from 1,16,625 in the same period previous year. During the same months, the property deals improved 15.5 per cent in Visakhapatnam.

The real estate experts anticipate Vijayawada market to recover soon from crash within two years post pandemic period. "At present, the property business is in bad shape here. Both commercial and residential real estate sales dropped in Amaravati region. Mostly, need-based housing units are only being sold in the city limits," said G Hari Babu, President of AP Naredco.

He further says, "Vijayawada market has witnessed both ups and downs. Now, the city is at the bottom of the graph as people want to hold investments. However, it will again rise in 'V' shape."

Raja Srinivas, State President of CREDAI AP Chapter, said: "There has been a standstill in the realty deals of Amaravathi region.

Neither rates have increased nor reduced, but in general there is a hiatus in the property transactions. Mega projects in this region have taken a setback, but first-time home buyers are coming forward to purchase ready to occupy flats."

"All investors, who had planned to purchase plots in Amaravathi area are now buying residential flats in Viajayawada city region where erstwhile regular businesses used to take place. Once there is clarity regarding shifting the capital, there would be a spurt in sales from the genuine need based buyers, rather than speculation/ investment buyers."